Governments around the world engage in fiscal interventions targeting the poor. Using a rich dataset on income and consumption of Indian households, we estimate the distributional effects of such interventions in a heterogeneous agent model. The standard scheme of interventions that consistently...

There are two major trends in US entrepreneurship since 1975: (1) entrepreneurs' leverage has risen; and (2) their number has fallen. This paper investigates the extent to which these trends have contributed to the observed rise in wealth inequality. I develop a general equilibrium,...

A criticism of earnings risk models of wealth inequality is that they do not accurately capture individual's earnings risks. I construct a stochastic process that directly determines workers earnings. I use a set of new empirical moments to match moments of earnings changes in the universe of...